Question - Altered State University (ASU) is preparing its master budget for the upcoming academic year. Currently, 12,000 students are enrolled on campus; however, the admissions office is forecasting a 5% growth in the student body next year despite a tuition hike to $80 per credit hour. The following additional information has been gathered from an examination of university records and conversations with university officials:
-The average class has 30 students, and the typical student takes 15 credit hours each semester.
-Each class is three credit hours.
-Each faculty member teaches five classes during the academic year.
a. What is the budgeted tuition revenue for the upcoming academic year?
b. How many faculty members will be needed to teach classes in the upcoming year?